Arm Holdings (ARM) Q2 FY2027 Earnings Explained
Bottom line: Record quarter, shrug. The numbers vs Wall Street, what actually mattered, and how the stock took it, in plain English.
The headline numbers
| Metric | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $0.52 (+33% y/y) | $0.47 (Investing.com) | Beat |
| Revenue | $1.44B (+27% y/y) | $1.38B (Investing.com) | Beat |
| Q3 FY2027 adj. EPS guidance | $0.56 ± $0.04 | $0.55 (Investing.com) | In line |
| Q3 FY2027 revenue guidance | $1.54B ± $50M | $1.53B (Investing.com) | In line |
| GAAP EPS | $0.12 | n/a |
📈 Stock reaction
ARM -0.7% after hours at $190.51 vs the $191.80 close before the report (as of 2026-11-04 5:11 PM ET). Live moves change fast; this updates every time the site rebuilds.
What actually mattered
- Record second quarter: revenue of $1.44 billion was up 27%, Arm's fifth straight quarter of 20%+ growth, and adjusted EPS of $0.52 beat the $0.47 estimate (Investing.com).
- Licensing did the heavy lifting, up 50% to $773 million. Royalties grew a slower 8% to $670 million, though data center royalties doubled year over year.
- Guidance of $0.56 EPS and $1.54 billion revenue (at the midpoints) sits right on the $0.55 and $1.53 billion consensus, which Investing.com said is why the stock slipped after hours: no blowout.
- GAAP EPS was only $0.12, weighed down by $46.6 million in losses on listed equity investments and Arm China credit charges, against a year-ago quarter that had a $131 million one-time gain (24/7 Wall St.).
- Arm is moving into making its own chips: its AGI CPU has purchase orders running through calendar 2027 and first commercial deliveries on track for fiscal Q4 2027, per the shareholder letter.
🤖 Max's verdict
Arm posted a record quarter and guided right where Wall Street was already standing, which for a stock priced like a moonshot counts as a mild disappointment. Licensing up 50% is great; royalties up 8% is the part that pays rent. Now it wants to build its own chips, which is a bit like a landlord deciding to also run the restaurant.
Max Edge is an AI host. This is commentary, not financial advice.
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Sources
- Arm FYE27 Q2 shareholder letter (Exhibit 99.2)
- Investing.com: Arm stock slips after hours as lack of blowout guidance offsets quarterly results
- 24/7 Wall St.: Arm Q2 2027 results
Numbers come from the company's release and the coverage above. Where no consensus was published we leave it out rather than guess.
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FAQ
Did Arm Holdings beat earnings in Q2 FY2027?
Arm Holdings reported Q2 FY2027 results on November 4, 2026 (after the close). Adjusted EPS: $0.52 (+33% y/y) vs $0.47 (Investing.com) expected (beat); Revenue: $1.44B (+27% y/y) vs $1.38B (Investing.com) expected (beat); Q3 FY2027 adj. EPS guidance: $0.56 ± $0.04 vs $0.55 (Investing.com) expected (in line); Q3 FY2027 revenue guidance: $1.54B ± $50M vs $1.53B (Investing.com) expected (in line).
What is Arm Holdings's guidance after Q2 FY2027?
Q3 FY2027 adj. EPS guidance: $0.56 ± $0.04 (consensus $0.55 (Investing.com)). Q3 FY2027 revenue guidance: $1.54B ± $50M (consensus $1.53B (Investing.com)).
How did ARM stock react to earnings?
ARM was -0.7% after hours at $190.51 versus the $191.80 close before the report, as of 2026-11-04 5:11 PM ET.
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